HCLTech Says US PERM Suspension To Have Limited Impact On Business And Employees
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HCLTech has played down concerns over the US PERM suspension, pointing to its limited applications under the programme and a workforce strategy that has increasingly shifted towards local hiring.
HCLTech expects the US suspension of its Permanent Labor Certification Program (PERM) applications to have a limited impact on the company, joining peers TCS and Infosys in playing down concerns over the latest US immigration restrictions.
Speaking after the company's Q2 FY27 results on Monday, HCLTech Chief People Officer Ram Sundararajan said the IT company has made relatively few PERM applications in recent years as it has steadily increased local hiring in the US.
“We've been progressively localising our workforce in the US, and our reliance on PERM applications has reduced significantly,” Sundararajan said.
HCLTech filed 59 PERM applications in US FY2026, sharply lower than 323 applications in FY2025, according to US Department of Labor data. The company said it would comply with the US government's directive and respond to any questions from the authorities.
HCLTech Steps Up Local Hiring In US
The US Department of Labor suspended HCLTech and several other technology companies from the PERM programme on October 8. The list includes TCS, Infosys, Wipro, Cognizant and Capgemini, alongside Microsoft and Adobe.
PERM is part of the employment-based permanent residency process in the US and is required for many employer-sponsored green card applications. The suspension does not revoke existing H-1B approvals.
For HCLTech, the company believes its shift towards hiring employees locally in the US should limit the impact on its workforce and client operations. Sundararajan said the company would continue with that strategy while complying with the latest requirements.
HCLTech's overall workforce increased by 6,450 employees during the September quarter to 230,339, its biggest quarterly net addition since Q2 FY23. The company hired 6,136 freshers during the quarter.
TCS, Infosys Also See Limited Impact
HCLTech's comments follow similar statements from TCS and Infosys after the US government's decision.
TCS has said its PERM applications have fallen to single digits over the past two years and it does not expect the suspension to affect its client commitments or talent strategy. The company has increasingly relied on local hiring in the US and plans to recruit another 15,000 people in the country over the next five years.
Infosys has also said it does not expect a material impact from the suspension.
The latest comments from HCLTech add to indications from India's largest IT services companies that the immediate business impact could remain contained as their dependence on the PERM route has declined with increased local hiring in the US.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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